OpenAI Startup Fund Closes $15M Funding Round from Unnamed Investors

The OpenAI Startup Fund, a venture fund focused on AI-related companies, has recently closed a $15 million funding round from two unnamed investors. The funds were transferred to a special purpose vehicle, OpenAI Startup Fund SPV II, L.P., and mark the second time the fund has raised capital through an SPV. The OpenAI Startup Fund, which has previously been criticized for a potential conflict of interest, has a portfolio that includes legal tech startup Harvey, Ambiance Healthcare, and Figure AI, among others, and has committed $175 million with a gross net asset value of $325 million as of last year. Ian Hathaway, previously an investor with the VC firm Haystack, now manages the fund.

Key Takeaways

• OpenAI Startup Fund, an early-stage VC fund, closes $15M tranche from two unnamed investors.
• Fund's investments include legal tech startup Harvey, Ambiance Healthcare, and Figure AI.
• OpenAI CEO Sam Altman previously controlled the fund, raising capital from outside limited partners like Microsoft.
• Altman transferred control to Ian Hathaway, previously an investor with Haystack, in April.
• OpenAI Startup Fund has $175M in commitments, $325M in gross net asset value, and has backed over a dozen startups.

Analysis

The recent $15 million funding round for the OpenAI Startup Fund indicates strong investor confidence in AI-related companies. This influx of capital will enable the fund to expand its portfolio and support more startups, potentially including those in emerging fields like healthcare and legal technology. However, the use of a special purpose vehicle (SPV) raises transparency concerns, as it allows investors to remain anonymous. This lack of transparency may lead to criticism and scrutiny from regulators and the public.

Previously managed by OpenAI CEO Sam Altman, the fund is now under the leadership of Ian Hathaway, who was previously an investor at Haystack. This change in management could signal a strategic shift for the fund, possibly focusing on different investment areas or adopting new strategies. As a result, existing and potential portfolio companies like Harvey, Ambiance Healthcare, and Figure AI will need to adapt to these potential changes and navigate any implications for their ongoing partnerships with the fund.

Did You Know?

• Early-stage VC fund: An early-stage venture capital (VC) fund is a type of investment fund that provides capital to startups and emerging companies in exchange for equity. Early-stage VC funds typically invest in companies during the seed or series A funding rounds, which are the initial stages of a company's development.
• Special Purpose Vehicle (SPV): A special purpose vehicle (SPV) is a legal entity created for a specific purpose, such as holding assets or managing risk. In the context of the OpenAI Startup Fund, the SPV was used to raise capital from the two unnamed investors. This allows the investors to maintain a level of separation and protection from the fund's other assets and liabilities.
• Gross net asset value: Gross net asset value (GNAV) is a financial term that represents the total value of a fund's assets, minus the value of its liabilities. In the case of the OpenAI Startup Fund, the GNAV was reported to be $325 million as of last year. GNAV is an important metric for investors to consider, as it provides insight into the overall health and value of the fund.